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The attorneys general of California, Illinois, Minnesota, Texas, Vermont, and Wisconsin have secured a consent agreement under which Action Direct Marketing, El Cajon, California, and its president, Robert D. Hodges, must stop conducting deceptive telephone consumer health surveys. According to Attorney General press releases
Under the terms of the settlement, Action Direct Marketing is prohibited from misrepresenting the purpose of its consumer health surveys. It is also required to affirmatively disclose all potential uses of consumer health information gathered in a health survey and, specifically, to disclose that such information may be shared with health care providers or services for marketing purposes.
The company and Hodges must pay $25,000 in civil penalties to each of the six states.
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This article was posted on August 23, 1999.